Bitcoin Plunges Amidst Overall Crypto Market Downturn

Following the crypto market’s recent stability, Bitcoin has now led the markets down and has erased all the gains it incurred this past weekend. Today’s drop has led many altcoins to drop more than 10%, and the markets are showing few signs of finding any major support around their current price levels.

It is important to note that analysts do not attribute today’s drop to anything technical or fundamental, which signals that this plunge is likely based on a sudden increase in selling pressure.

Bitcoin Plunges to $3,600 Region

Today’s drop has sent Bitcoin (BTC) spiraling down nearly 9% to its current price of $3,675, down from its recent highs of nearly $4,100.

Alex Krüger, an economist who focuses on cryptocurrencies, discussed the drop in a recent tweet, saying that Bitcoin is entering a buying zone between $3,500 and $3,600, further noting that if it drops below $3,300, he would exit his long positions and reassess.

“What a majestic dump. $BTC back to my buying area of 3500-3600. Below 3300 exit and reassess. I’d like to see BTC ending the day above 3700. Consolidation below 3600 (bottom of prior area) would tilt the balance towards further downside,” Krüger explained.

Prior to this last weekend’s pump that sent BTC to highs of $4,100, it was trading at $3,800, which acted as a level of light support earlier today when its price first dropped, from which it proceeded to form another leg down towards its current price levels.

Mati Greenspan, the senior market analyst at eToro, spoke about the cryptocurrency’s recent price action in a note, explaining that there is nothing fundamental behind the drop.

“Many have been asking about the sudden drop in the crypto markets this morning. In my view, there doesn’t seem to be any real reason for this drop, neither technical nor fundamental. The one interesting thing about this movement is that it seems to be an exact reversal of the surge that happened on Sunday afternoon. At this point, the gains made since the start of the year have now been reversed and we’re back to a neutral 2019,” Greenspan explained.

Altcoins Plunge 10% or More, XRP Overtakes Ethereum

Bitcoin’s downwards move has led the altcoin markets to drop significantly, with most altcoins trading down 10% or more.

Ethereum has plunged over 15%, and is now trading at $127.5, significantly lower than its weekly highs of over $160.

XRP has dropped slightly less than most other altcoins, and is trading down 10.5% at its current price of $0.328. XRP has once again retaken the number two spot by market capitalization from Ethereum, but is only ahead of ETH’s market cap by $200 million, which means that they will likely switch spots several times over the coming days, assuming that the market volatility persists.